United States Announces $920 million Foreign Military Financing (FMF) direct loan agreement with Romania

  September 25, 2024   The United States is pleased to announce a $920 million Foreign Military Financing (FMF) direct loan agreement with Romania.    The FMF loan underscores the strategic partnership between the United States and Romania, a strong NATO Ally along its eastern flank and an important force for political and economic stability in Europe.  The U.S. government is providing up to $60 million in FMF grant funding toward the cost of this loan, which will help accelerate Romania’s major military modernization program, including purchases of U.S. defense equipment such as Abrams main battle tanks and coproduction of ammunition.    The signing of the agreement was hosted today by Prime Minister Marcel Ciolacu and signed by U.S. Defense Security Cooperation Agency (DSCA) Director Michael Miller, and Romanian Finance Minister Marcel Bolos, in the presence of Defense Minister Angel Tilvar and Economy Minister Stefan-Radu Oprea as well as U.S. Ambassador Kathleen Kavalec.    As U.S. Ambassador Kavalec said:  “We operate today in a fundamentally different strategic landscape in Europe, and Romania’s response has been nothing short of exemplary.  You have shown the world what it means to be a responsible leader in uncertain times. Romania is a provider — and not just a consumer —of security within the NATO alliance.”   DSCA Director Miller continued, “Direct loans are a security cooperation tool reserved for only our most important security cooperation partners.  Romania remains one of the highest priorities for DSCA.”  He noted his travel to Bucharest is a testament to U.S.-Romania defense cooperation.  “We look forward to continuing our partnership on programs that this loan may support,” Director Miller said.   “The signing of this loan agreement in the defense field is a major moment in the evolution of the Strategic Partnership between Romania and the United States of America and a solid argument of the trust and status that Romania enjoys in this relationship with our strategic ally.  At the national level, we will focus in the upcoming period to develop new production capacities in Romania, create jobs for Romanians and become relevant again in the production of military equipment at the regional level,” said Prime Minister Marcel Ciolacu.   Proceeds from the FMF direct loan will advance Romania’s military modernization effort across a wide range of capabilities, helping ensure that Romania can deter threats, defend its sovereignty, and contribute to NATO’s collective security for decades to come.   For more information on FMF loans, please visit the dedicated page at https://www.dsca.mil/foreign-      U.S. Ambassador Kathleen Kavalec Remarks at FMF Loan Signing Ceremony   September 25, 2024   Good afternoon, Prime Minister Ciolacu, Finance Minister Bolos, Defense Minister Tilvar, Economy Minister Oprea, DSCA Director Miller, Members of the Government, Distinguished Guests, Ladies and Gentlemen,   It is a great pleasure to be here at Victoria Palace with such esteemed company.  I would like to begin by thanking Prime Minister Ciolacu for hosting us today and for your unwavering support of the agreement we are about to sign.    Your presence here is a testament to the government-wide commitment Romania has made toward the successful conclusion of this loan agreement.   Over the past four months, the U.S. Departments of State and Defense have worked closely with Romania’s Ministries of Finance, Economy, and Defense to bring this agreement to fruition in record time.    This Foreign Military Financing, or FMF, loan, valued at 920 million dollars, is an extraordinary achievement, but it is more than just a financial agreement.  It reflects the strength and resilience of our bilateral partnership and our shared commitment to ensuring peace, stability, and security in this region.    This FMF loan also ventures into new territory, by supporting a joint U.S.-Romanian, public-private initiative to produce artillery ammunition.    This groundbreaking collaboration highlights the importance of Romania’s defense modernization efforts.  In providing U.S. grant funds towards this effort, our goal is to help ensure that Romania remains at the forefront of defense innovation and capability for years to come.    This collaboration will also generate new jobs here in Romania and strengthen economic ties between our countries.   In the two decades since Romania joined NATO, you have proven time and again that you are a reliable and capable Ally.  Romania stands as a pillar of stability along NATO’s eastern flank and in the Black Sea region and serves as a welcoming host for thousands of U.S. and NATO troops.    As President Biden said in May, I don't think there is any NATO partner who has a stronger commitment to the Euro-Atlantic alliance.  This loan agreement reflects our recognition of that commitment, and we stand with you today, ready to support your continued leadership in regional defense and security.   Today’s signing is even more significant given the acute security challenges presented by Russia’s continued unprovoked aggression against Ukraine.    We operate today in a fundamentally different strategic landscape in Europe, and Romania’s response to this changing environment has been nothing short of exemplary.    From hosting thousands of displaced Ukrainians, to facilitating grain transit to Romania’s training of Ukrainian F-16 pilots, and now the donation of a PATRIOT air defense system to Ukraine, Romania has shown the world what it means to be a responsible leader in uncertain times.   In this environment, Romania’s continued defense modernization is crucial.  We are supporting this effort across multiple fronts, including our recent announcement of the pending sale of F-35 fighter jets to Romania.    Through these efforts, Romania continues to indicate its commitment to enhancing national and regional security and strengthening NATO’s collective defense.   With today’s historic agreement, we hope to underscore the United States’ unwavering commitment to our Strategic Partnership with Romania.   To the Romanian people, we want you to know that America stands with you in support of your national security, your sovereignty, and your defense.   This FMF loan reflects that U.S. commitment.  It will help ensure that Romania can deter threats, defend its sovereignty, and improve NATO interoperability, making Romania an even more essential player in securing peace and stability in Europe. This strategic investment has as its foundation our shared values – democracy, freedom, and peaceful cooperation – as well as the deep historic ties of family and culture.    Romania has long been a steadfast friend to the United States, and we are proud to stand with you as you continue to advance your defense capabilities and strengthen the ties between our two great countries and your role as a leader in the region.    Thank you.       Director of the Defense Security Cooperation Agency (DSCA) Michael Miller at the FMF Loan Signing Ceremony   September 25, 2024   Prime Minister Ciolacu,Minister Bolos,Minister Tilvar,Minister Oprea,Minister Ghigiu, Ambassador Kavalec, Distinguished guests,   I am Michael Miller, the Director of the Defense Security Cooperation Agency (DSCA). I want to begin by expressing my appreciation for the opportunity to address this esteemed gathering in Bucharest, and particularly to the Ministry of Finance for hosting us. I am thrilled to be here with you today to sign the U.S.-Romanian Foreign Military Financing loan.   This loan, of nearly a billion dollars, represents U.S. solidarity with Romania’s ambitious defense modernization goals, which will enhance our collective security and interoperability for decades to come. This momentous occasion reinforces the strong strategic partnership between the United States and Romania that has thrived for over 25 years.   It also is a testament to the collective work of engagement across both our governments – the U.S. Departments of Defense and State, and the U.S. Congress, and in Romania, the ministries of Finance, Defense, and Economy, the Parliament, as well as support from the Prime Minister across the full cabinet.   Romania is a steadfast Ally and an anchor of stability along NATO’s eastern flank and the Black Sea region. I want to comment Romania’s defense investments, prioritization of military modernization, and leadership within the NATO alliance, spending more than 2 percent of GDP on defense. Romania’s defense infrastructure investments have been critical in bolstering defenses and hosting an enhanced U.S. and Allied presence. I also extend my sincere gratitude to the people of Romania for being such a gracious host of thousands of U.S. forces.   Additionally, I would like to thank you for your leadership in the Black Sea region to promote the safe freedom of navigation, advancing shared NATO priorities in transatlantic defense cooperation, and your committed support equipping and training Ukraine in the face of Russia’s illegal war of choice.   The United States is proud to have completed the signing of this Foreign Military Financing direct loan with you in record time. Direct loans represent a security cooperation tool reserved for only our most important security cooperation partners. Romania remains one of the highest priorities for the DOD, and my travel here today to Bucharest on this auspicious occasion is a testament to the U.S. commitment to Romania and NATO’s eastern flank, as well as our shared commitment to defense cooperation.   We look forward to continuing our partnership on programs that this loan may support. Ladies and gentlemen, thank you again for your leadership advancing our collective security, and for providing me the opportunity to speak to you all today.   Thank you!   (Source:Public Diplomacy – Press Office - U.S. Embassy-Bucharest)